Correlation Between Citigroup and Banco Bilbao
Can any of the company-specific risk be diversified away by investing in both Citigroup and Banco Bilbao at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Citigroup and Banco Bilbao into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Banco Bilbao Viscaya, you can compare the effects of market volatilities on Citigroup and Banco Bilbao and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Citigroup with a short position of Banco Bilbao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Banco Bilbao.
Diversification Opportunities for Citigroup and Banco Bilbao
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Banco is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Banco Bilbao Viscaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Bilbao Viscaya and Citigroup is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Citigroup are associated (or correlated) with Banco Bilbao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Bilbao Viscaya has no effect on the direction of Citigroup i.e., Citigroup and Banco Bilbao go up and down completely randomly.
Pair Corralation between Citigroup and Banco Bilbao
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.43 times less return on investment than Banco Bilbao. But when comparing it to its historical volatility, Citigroup is 1.04 times less risky than Banco Bilbao. It trades about 0.07 of its potential returns per unit of risk. Banco Bilbao Viscaya is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 649.00 in Banco Bilbao Viscaya on March 9, 2025 and sell it today you would earn a total of 866.00 from holding Banco Bilbao Viscaya or generate 133.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Banco Bilbao Viscaya
Performance |
| Timeline |
| Citigroup |
| Banco Bilbao Viscaya |
Citigroup and Banco Bilbao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Banco Bilbao
The main advantage of trading using opposite Citigroup and Banco Bilbao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Banco Bilbao can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Banco Bilbao will offset losses from the drop in Banco Bilbao's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Banco Bilbao vs. Barclays PLC ADR | Banco Bilbao vs. ING Group NV | Banco Bilbao vs. Banco Santander SA | Banco Bilbao vs. HSBC Holdings PLC |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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